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Bausch + Lomb Corporation (BLCO)
NYSE:BLCO

Bausch + Lomb Corporation (BLCO) AI Stock Analysis

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Bausch + Lomb Corporation

(NYSE:BLCO)

Rating:64Neutral
Price Target:
$14.50
▲(7.81%Upside)
Bausch + Lomb's stock score is primarily influenced by its financial performance and technical analysis. While the company shows strong market positioning and growth in key segments, profitability and cash flow issues weigh heavily. Technical indicators are favorable, but nearing overbought levels. The valuation remains weak, primarily due to negative earnings. However, recent corporate events and resilient earnings call outcomes provide some positive outlook.
Positive Factors
Product Development
ELIOS, the MIGS glaucoma surgery product using excimer laser technology, has launched in the EU, anticipating U.S. approval and an early launch.
Product Performance
Miebo sales beat expectations in Q1, significantly outperforming both the analyst's estimate and consensus.
Revenue Growth
The company continued to deliver revenue growth across most segments.
Negative Factors
Financial Performance
Net loss was $212M, or ($0.60) per share, more than the estimated loss of $59M.
Market Conditions
There is uncertainty surrounding potential tariff impacts, which could further affect the company's financial guidance.
Product Recall
The enVista recall negatively impacts revenue and EBITDA, despite the issue being resolved and production resuming.

Bausch + Lomb Corporation (BLCO) vs. SPDR S&P 500 ETF (SPY)

Bausch + Lomb Corporation Business Overview & Revenue Model

Company DescriptionBausch + Lomb Corporation (BLCO) is a leading global eye health company that focuses on the development, manufacturing, and marketing of a wide range of products. The company's core product categories include contact lenses, lens care products, ophthalmic pharmaceuticals, and surgical devices and instruments. Serving both the consumer and the healthcare professional markets, Bausch + Lomb operates in sectors such as Vision Care, Pharmaceuticals, and Surgical, providing solutions aimed at improving vision and overall eye health.
How the Company Makes MoneyBausch + Lomb makes money through a diversified revenue model centered around its key product categories. The Vision Care segment generates revenue from the sale of contact lenses and lens care products, catering to both individual consumers and eye care professionals. The Pharmaceuticals segment includes prescription and over-the-counter products for the treatment of various eye conditions, contributing significantly to the company's earnings. The Surgical segment derives its income from the sale of ophthalmic surgical devices and instruments, which are used in procedures such as cataract surgery. Bausch + Lomb's revenue streams are supported by its global distribution network and strategic partnerships with healthcare providers and institutions, enabling it to maintain a strong presence in the eye health market.

Bausch + Lomb Corporation Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: -1.97%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted robust growth in the Vision Care and Surgical segments, as well as strong performance from the MIEBO product line. However, challenges in the Pharmaceuticals segment, a recall of enVista IOLs, and potential tariff impacts posed significant concerns. Despite these challenges, the company's diverse portfolio and proactive measures indicate resilience.
Q1-2025 Updates
Positive Updates
Vision Care Revenue Growth
Vision Care first quarter revenue increased by 5%, driven by growth in both consumer and contact lenses. The Daily SiHy contact lenses showed 42% constant currency revenue growth.
Surgical Segment Growth
Surgical segment revenue increased by 11% with growth in each of the three surgical product categories. Premium IOLs grew by 77%, led by enVista.
Strong Performance of MIEBO
MIEBO delivered $57 million of revenue in Q1, representing sequential growth of 8% and year-over-year growth of over 100%.
Consumer Brand Growth
The Blink family of products, including eye drops and supplements, delivered 84% reported revenue growth year-over-year. LUMIFY grew by 9% in the quarter.
Mid-Single-Digit Revenue Growth
Bausch + Lomb delivered mid-single-digit constant currency revenue growth in the first quarter, showing resilience across all reporting segments.
Negative Updates
Pharmaceuticals Setback
The Pharmaceuticals segment faced a setback due to underperformance in the high-margin U.S. Generics business and XIIDRA revenue headwinds.
Voluntary Recall of enVista IOLs
The recall of intraocular lenses on the enVista platform due to a toxic anterior segment syndrome (TASS) signal posed challenges, although it was resolved swiftly.
Tariff Challenges
The evolving tariff landscape, particularly with China, presents challenges, with estimated tariffs potentially impacting adjusted EBITDA margin by approximately 120 basis points in 2025.
U.S. Generics Revenue Decline
The U.S. Generics business declined by 23% in the quarter due to increased competition and lower inventory within the channel.
Company Guidance
During Bausch + Lomb's First Quarter 2025 Earnings Call, key financial guidance was discussed, highlighting the company's performance and future outlook. The company reported a 5% constant currency revenue growth for the quarter, with total revenue reaching $1.137 billion. The guidance for 2025 was updated, raising full-year revenue expectations to a range of $5 billion to $5.1 billion, reflecting a constant currency growth of approximately 4.5% to 6.5%. Adjusted EBITDA guidance was set between $850 million and $900 million. The company also addressed the impact of the enVista intraocular lenses recall, estimating a one-time headwind of $55 million to revenue and $65 million to adjusted EBITDA. Vision Care revenue grew by 5%, driven by Daily SiHy contact lenses, which saw a 42% increase. The Surgical segment experienced an 11% revenue growth, with premium IOLs up by 77%. Pharmaceuticals reported a 1% growth, with MIEBO delivering $57 million in revenue, marking over 100% year-over-year growth. However, the U.S. Generics business declined by 23% due to increased competition. The company also discussed potential tariff impacts, estimating a 120 basis point effect on adjusted EBITDA margins for 2025, while outlining several mitigating actions to address these challenges.

Bausch + Lomb Corporation Financial Statement Overview

Summary
Bausch + Lomb Corporation shows solid revenue growth and a strong gross margin, but faces significant profitability challenges and cash flow constraints. The balance sheet is stable with moderate leverage, but profitability needs improvement.
Income Statement
65
Positive
Bausch + Lomb Corporation shows a consistent revenue growth trajectory, with a 3.5% increase in TTM. However, the company is facing profitability challenges, as indicated by negative net income margins and a declining EBIT margin. The gross profit margin remains strong at approximately 66.9%, but the company needs to address its operational inefficiencies to improve its overall profitability.
Balance Sheet
70
Positive
The company maintains a solid equity base with an equity ratio of 47.4%, indicating financial stability. However, the debt-to-equity ratio of 0.76 suggests moderate leverage, which could pose risks if profitability does not improve. The return on equity is negative due to net losses, highlighting the need for enhanced operational performance.
Cash Flow
55
Neutral
The cash flow analysis reveals a concerning trend with negative free cash flow in the TTM period, indicating challenges in generating cash after capital expenditures. Operating cash flow is positive but declining, with a significant drop in the operating cash flow to net income ratio. The company must improve its cash generation capabilities to ensure long-term sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.83B4.77B4.15B3.77B3.77B3.41B
Gross Profit2.75B2.90B2.50B2.25B2.30B2.13B
EBITDA399.00M614.00M512.00M599.00M762.00M739.00M
Net Income-490.00M-317.00M-260.00M15.00M182.00M-17.00M
Balance Sheet
Total Assets13.43B13.47B13.44B11.14B10.82B11.27B
Cash, Cash Equivalents and Short-Term Investments202.00M305.00M331.00M354.00M174.00M238.00M
Total Debt4.83B4.78B4.56B2.44B112.00M101.00M
Total Liabilities7.00B6.92B6.52B4.04B1.42B1.28B
Stockholders Equity6.36B6.47B6.85B7.03B9.33B9.92B
Cash Flow
Free Cash Flow-167.41M-59.00M-198.00M170.00M664.00M263.00M
Operating Cash Flow165.60M232.00M-17.00M345.00M873.00M522.00M
Investing Cash Flow-470.07M-412.00M-2.11B-215.00M-214.00M-256.00M
Financing Cash Flow196.63M178.00M2.08B81.00M-712.00M-232.00M

Bausch + Lomb Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.45
Price Trends
50DMA
12.03
Positive
100DMA
13.40
Positive
200DMA
16.17
Negative
Market Momentum
MACD
0.32
Negative
RSI
72.24
Negative
STOCH
90.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLCO, the sentiment is Positive. The current price of 13.45 is above the 20-day moving average (MA) of 12.23, above the 50-day MA of 12.03, and below the 200-day MA of 16.17, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 72.24 is Negative, neither overbought nor oversold. The STOCH value of 90.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLCO.

Bausch + Lomb Corporation Risk Analysis

Bausch + Lomb Corporation disclosed 56 risk factors in its most recent earnings report. Bausch + Lomb Corporation reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Bausch + Lomb Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
RMRMD
85
Outperform
$37.57B28.7725.81%0.82%9.54%37.23%
COCOO
69
Neutral
$14.53B35.325.15%6.88%21.11%
64
Neutral
$4.75B-5.56%11.94%-6.98%
BABAX
60
Neutral
$16.03B136.07-8.96%2.25%-20.17%-138.32%
60
Neutral
$3.30B-34.47%4.03%-5.61%-921.99%
54
Neutral
$837.98M55.81-19.14%-14.44%-557.38%
46
Neutral
C$192.85M-4.25-8.56%2.91%13.52%-1.74%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BLCO
Bausch + Lomb Corporation
13.76
-0.90
-6.14%
BAX
Baxter International
31.13
-1.27
-3.92%
COO
Cooper Co
73.02
-12.49
-14.61%
XRAY
DENTSPLY SIRONA
16.57
-7.34
-30.70%
RMD
Resmed
255.88
68.17
36.32%
STAA
Staar Surgical
17.56
-25.54
-59.26%

Bausch + Lomb Corporation Corporate Events

Private Placements and Financing
Bausch + Lomb Expands Note Offering to €675 Million
Positive
Jun 18, 2025

On June 18, 2025, Bausch + Lomb Corporation announced an increase in its offering of senior secured floating rate notes to €675 million, up from €600 million, with the proceeds intended to refinance existing loans and credit facilities. The company is also seeking to establish a $2.325 billion new term B loan facility and a new $800 million revolving credit facility, with both expected to close on June 26, 2025, to further strengthen its financial position.

The most recent analyst rating on (BLCO) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Bausch + Lomb Corporation stock, see the BLCO Stock Forecast page.

Private Placements and Financing
Bausch + Lomb Launches €600 Million Notes Offering
Neutral
Jun 11, 2025

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company plans to use the proceeds to repay existing borrowings and refinance outstanding loans, with the transactions subject to market conditions. The notes will be guaranteed by Bausch + Lomb and secured by first priority liens, though there is no assurance of successful completion.

The most recent analyst rating on (BLCO) stock is a Hold with a $13.38 price target. To see the full list of analyst forecasts on Bausch + Lomb stock, see the BLCO Stock Forecast page.

Private Placements and Financing
Bausch + Lomb Launches €600M Notes Offering
Neutral
Jun 10, 2025

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company aims to secure a $2.2 billion new term B loan facility and a new $800 million revolving credit facility to refinance existing loans and support general corporate purposes. The transactions, subject to market conditions, are designed to strengthen the company’s financial structure but are not guaranteed to be completed as planned.

The most recent analyst rating on (BLCO) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Bausch + Lomb Corporation stock, see the BLCO Stock Forecast page.

Private Placements and Financing
Bausch + Lomb Launches €600 Million Notes Offering
Neutral
Jun 10, 2025

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company plans to use the proceeds to repay existing borrowings and refinance outstanding loans, with the transactions subject to market conditions. The notes will be guaranteed by Bausch + Lomb and secured by first priority liens, though there is no assurance of successful completion.

The most recent analyst rating on (BLCO) stock is a Hold with a $13.38 price target. To see the full list of analyst forecasts on Bausch + Lomb stock, see the BLCO Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Bausch + Lomb Shareholders Approve Executive Compensation
Neutral
May 21, 2025

At the Annual Meeting of Shareholders on May 21, 2025, Bausch + Lomb Corporation‘s shareholders voted on three proposals. The election of directors resulted in the appointment of several individuals to the Board of Directors, who will serve until the 2026 Annual Meeting. Additionally, the shareholders approved the executive compensation on a non-binding advisory basis.

The most recent analyst rating on (BLCO) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Bausch + Lomb Corporation stock, see the BLCO Stock Forecast page.

Executive/Board Changes
Bausch + Lomb’s New Board Agreements Announced
Neutral
May 21, 2025

On May 19, 2025, Bausch Health Companies Inc., the majority shareholder of Bausch + Lomb Corporation, entered into letter agreements with the Icahn Group, Paulson Group, and Kavanagh Group. These agreements stipulate that if any of these groups engage in specified actions, they must resign from the boards of both Bausch Health and Bausch + Lomb. The agreements also include provisions for voting on board nominees, aiming to maintain stability in board representation.

The most recent analyst rating on (BLCO) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Bausch + Lomb Corporation stock, see the BLCO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025